M.W. Kellogg Co./Siciliana Appalti Costruzioni, S.p.A. v. United States

33 Cont. Cas. Fed. 74,380, 10 Cl. Ct. 17, 1986 U.S. Claims LEXIS 879
CourtUnited States Court of Claims
DecidedApril 30, 1986
DocketNo. 15-86C
StatusPublished
Cited by45 cases

This text of 33 Cont. Cas. Fed. 74,380 (M.W. Kellogg Co./Siciliana Appalti Costruzioni, S.p.A. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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M.W. Kellogg Co./Siciliana Appalti Costruzioni, S.p.A. v. United States, 33 Cont. Cas. Fed. 74,380, 10 Cl. Ct. 17, 1986 U.S. Claims LEXIS 879 (cc 1986).

Opinion

OPINION

MEROW, Judge:

This pre-award contract matter comes before the court for decision on the merits following extensive expedited proceedings. The controversy concerns a solicitation for the design and construction of 460 Air Force family housing units at Comiso Air Station, Sicily, Italy. A protective order has been issued, causing the record to date to be placed largely under seal in order to protect the integrity of the remaining procurement process and to prevent the disclosure of confidential information gained through relatively unrestricted discovery.

Following defendant’s decision to proceed with an award prior to the date this litigation could be resolved, an application for a temporary restraining order and a preliminary injunction was pressed by M.W. Kellogg Company/Siciliana Appalti Costruzioni, S.p.A., a Joint Venture (hereinafter plaintiff or Kellogg). Plaintiff based its motion on several alleged improprieties in the contract process, including. the government’s violation of procurement regulations.

A temporary restraining order was issued on March 11, 1986. This action was premised upon public policy gleaned from the Competition in Contracting Act, 31 U.S.C. § 3553. That legislation is addressed to similar bid protest matters before the Comptroller General and not to matters before the Claims Court. However, in enacting this legislation, which requires the postponing of contract award or performance pending resolution of bidding disputes, Congress necessarily established public policy in this regard. It was concluded that this policy, as expressed in legislation, should not be ignored in reaching an analogous decision with respect to a pre-award temporary restraining order. See United States v. Acme Process Equipment Co., 385 U.S. 138, 146, 87 S.Ct. 350, 355, 17 L.Ed.2d 249 (1966).1 Where, as here, any subsequent termination of an awarded contract would cause the government to incur substantial additional cost, it was concluded that, as would be the case in an equivalent matter directly covered by 31 U.S.C. § 3553, resolution of the dispute should, if possible, occur prior to award or performance. . See also 40 U.S.C. § 759(h)(2)(B) (procurement suspension pending decision on automated data bid protest matters). After trial on the merits had been completed, defendant reported that a significant offer submitted for the contract involved in this matter would shortly no longer remain open. So as to continue to preserve the status quo, to the extent possible, the temporary restraining [19]*19order was then lifted. This action was taken without prejudice to a resolution of the fully-presented merit issues, and the granting of whatever relief would, as a result, then be appropriate.2

Accordingly, the following findings on the issues raised are premised upon the record in this matter, including two hearings on preliminary matters and a trial on the merits. To avoid placing this opinion under seal pending any appeal, confidential information has not been included. The documents setting forth this undisputed information are, of course, on file as a part of the record.

Facts

On March 29, 1985 defendant, through its agent, the Naval Facilities Engineering Command, Contract, Mediterranean, (NAVFAC), issued Request for Proposals (RFP) No. N62745-85-R-0038, soliciting proposals for the design and construction of 460 Air Force family housing units at Comiso Air Station, Italy. This turnkey construction procurement contemplated award to a joint venture composed of a United States firm and an Italian firm. The Italian firm had to be approved by an agency of the Italian government. The contract documents listed all such approved Italian firms. Proposals were to be received by July 15, 1985.

With respect to the sum available for this procurement, the contract documents provided to potential offerors included a clause, 1A.4 “Information Concerning Cost Limitations,” which provided (in part):

Pursuant to Applicable Public Laws for Military Family Housing, the Government has programmed $29,000,000 for the award of this contract. Proposals in excess of this amount, at the Government discretion, may be eliminted [sic] from further consideration; therefore, proposers should prepare their proposals so as to permit award at a price within this amount. * * * a. This project is authorized and appropriated by Public Law at $32,200,000. The Navy intends to award a contract for full criteria houses (i.e. procure the best house per dollar that meets these criteria via turnkey evaluation procedures in accordance with the basis of award provision paragraph 1C.7). * * * c. Public Law 97-214 Section 2853 allows the services to request additional funding authority from Congress. * * *

The difference between the $32.2 million authorized by Congress and the $29 million programmed by the Navy for this housing was attributable, in part, to a calculation as to the amount which must be reserved for unanticipated construction changes. In programming $29 million, the Navy used a five percent contingency rate.

With respect to the award of the contract, the documents furnished to potential offerors included a clause 1C.7, “Basis of Award,” which provided:

Subject to cost limitations (see paragraph entitled “Information Concerning Cost Limitations”), award will be made to that firm offering the lowest dollar to quality point ratio determined by dividing the offered price by the technical points assigned during the Government evaluation and selection procedure. The Government reserves the right to reject any or all proposals at any time prior to award; to negotiate with any or all proposers; to award a contract to other than the proposer submitting the lowest price offer; and, to award a contract to the proposer submitting the proposal determined by the Government to be the most advantageous to the Government. PROPOSERS ARE ADVISED THAT IT IS DEFINITELY POSSIBLE THAT AWARD MAY BE MADE WITHOUT DISCUSSION OR ANY CONTACT CONCERNING THE PROPOSALS RECEIVED. THEREFORE, PROPOSALS SHOULD BE SUBMITTED INITIALLY ON THE MOST FAVORABLE TERMS [20]*20FROM A PRICE AND TECHNICAL STANDPOINT WHICH THE PROPOSER CAN SUBMIT TO THE GOVERNMENT. DO NOT ASSUME THAT YOU WILL BE CONTACTED OR AFFORDED AN OPPORTUNITY TO CLARIFY, DISCUSS, OR REVISE YOUR PROPOSAL. (See paragraph entitled “Evaluation Criteria.”)

The “Evaluation Criteria” clause, 1C.14, provided (in part) that “Evaluation will be made on the basis of site design, site engineering, dwelling unit design, and dwelling unit engineering and specifications, energy conservation and cost.” For the technical evaluation required, a 1,000 point system was set forth in the provisions made available to potential offerors. This was divided into possible maximum points as follows: Site Design, 290; Site Engineering, 100; Dwelling Unit Design, 430; Dwelling Unit Engineering & Specifications, 105; Energy Conservation, 75. Nonconforming items would receive a zero score.

Nine initial proposals were received by July 15, 1985.

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33 Cont. Cas. Fed. 74,380, 10 Cl. Ct. 17, 1986 U.S. Claims LEXIS 879, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mw-kellogg-cosiciliana-appalti-costruzioni-spa-v-united-states-cc-1986.